"What steps have you taken so far to quantify the economic flow on effects to Gunns' local suppliers, contractors and service providers?"

The Premier told Parliament the Government had sent a skills response unit to work with Gunns' 200 Tasmanian employees.

"We will stand by those workers today who will be losing their jobs," she said.

"We've already got support on the ground through the skills response unit through in the Department of Economic Development working with those workers now because that's the people I'm thinking about today."

The Opposition believes the Labor-Green government is blocking investment in Gunns' Tamar Valley pulp mill.

Mr Hodgman said an election would solve the problem.

"Isn't it a fact that the single-biggest roadblock to the mill proceeding is the sovereign risk posed by your minority government, where the Greens so clearly have their hands on the lever of power?"

"If you were really serious about the mill proceeding, would you finally do the right thing; kick the Greens out of Cabinet and call an election?"

Lara Giddings called on the Opposition to stop playing politics with the "critical" project.

"We all know where the Greens stand on the pulp mill, that's not going to change," she said.

"But what makes a difference is when the Liberal Party joins with Labor on projects of this significance and stands up for this state.